In our practice we have a number of farm clients. A consistently high priority for these clients is making sure that the farm stays in the family. Typical characteristics of our farm clients:

• They have worked hard all of their lives and plowed most of the profits from the farming operation back into improvements, equipment and purchasing additional ground.
• They tend to be asset rich and cash poor.
• They are good businessmen with respect to their farming operations.
• They have also given a great deal of thought about how the farm should be passed to their heirs.

HOWEVER, one of the things many farmers rarely consider is the impact to the farm of a catastrophic health situation, like a nursing home stay. Many times our farmers have heard that the farm is “an exempt asset” and therefore not subject “sale” or “spend down”.

While it is true that the farm is an exempt asset if it is associated with the home, the farm is not protected from Ohio Estate Recovery Liens. Estate Recovery Liens are placed on a farm for the amount the government pays for any nursing home care or in-home medical care and related services. For example, if the farmer’s wife would go into a nursing home and the government pays $6,000 per month for four years for her care, a $288,000 lien is attached to the farmer’s property.

There are ways to avoid these liens but preplanning is essential now more than ever. If you are interested in learning more about how to make sure your farm is not subject to one of these liens and stays in your family, you are invited to come in for a free consultation where we will discuss the techniques available to save your farm.